Vocus Group Limited (ASX: VOC)

Changing momentum: Down 25% in last six months (as at July 02, 2018), Vocus Group Ltd (ASX: VOC) witnessed a stock price surge of 3% on July 03, 2018. Lately, Macquarie Group Limited became an initial substantial holder by grabbing 5.2% of interest. The group also disclosed about a new and increased syndicated debt facility of A$1,270 million and NZ$150 million. The interest cover and gearing ratios are unchanged, while the Net Leverage Ratio (NLR) has been amended to provide financial headroom and flexibility to help the group cater to its strategic objectives in coming time period. The key thing is the trust bestowed by the banking partners on the group while the new facility has a weighted average tenure of 3.4 years in place under the Syndicated Facility Agreement. However, dividends will not be paid until NLR falls below 2.25x for two consecutive testing dates.

It appears that the new appointments of Kevin Russell as its Group Managing Director & CEO, and Mark Callander, CEO of Vocus New Zealand, are turning out favourably, and the group is setting itself for the changing Australian telecoms landscape. The group otherwise reported NPAT degrowth of 20.91% to $37.31m for the half-year ended 31 December 2017 while revenue from ordinary activities were $969.59m, up 11.54% from last year. Net Debt for the group as at 30 June 2018, has been flagged to be in the range of A$1.03 - $1.06 billion. We maintain a “Hold” on the stock at the current price of $ 2.370.
 

Amaysim Australia Limited (ASX: AYS)

Gaining positive sentiments: Junior Telecom player, Amaysim Australia Limited (ASX: AYS) also witnessed a share price rise of 3.3% on July 03, 2018.The group is set to release its 2018 full year results pre-market open on 27 August 2018. Meanwhile, Chief Executive Officer and Managing Director (CEO) Julian Ogrin is resigning and Peter O’Connell has assumed the role of CEO from July 2018.


FY18 Guidance (Source: Company Reports)

The group has indicated that its subscribers across mobile, energy and broadband, have been growing; and with new product launches, revival of the mobile product suite and better marketing campaigns, the full year 2018 performance would be better than what was expected earlier. The group has been trying to reposition its mobile product portfolio and its mobile ARPU has stabilised in the second half of 2018. This has come at the back of lesser subscribers moving to lower price plans. The group has thus proactively strategized the plans and is also trying to leverage on its acquisition of Click Energy. The group aims to have more strategic cross-sell initiatives across broadband and energy. The group is successfully providing home internet, energy and devices to about 800,000 Australian homes, and is trying to gear up on challenges in the industry. We maintain a “Hold” on the stock at $ 1.090 while it has otherwise fallen over 47% in last six months.

 
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